Geothermal Energy System Credit
Who is eligible?
You are entitled to claim this credit if:
- you purchased geothermal energy system equipment, or
- entered into a written agreement for the lease of geothermal energy system equipment,
- the New York residential property where the system was installed was your residence at the time the system was placed in service, and
- the property was not rented at any time during the taxable year in which the credit is claimed.
Note: The geothermal energy system must use solar thermal energy stored in the ground or bodies of water to produce heat for residential use, commonly known as a ground source heat pump.
How much is the credit?
The credit is equal to 25% of your qualified geothermal energy system equipment expenditures and is limited to $5,000.
The geothermal energy system credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years.
Note: You may only claim the geothermal energy system credit for one system in a tax year.
Form IT-267, Geothermal Energy System credit, and its instructions.